N.Y. Banking Law § 172: Restrictions on investments

§ 172. Restrictions on investments. 1. Every private banker may,

subject to the limitations and restrictions contained in this article,

make such investments of funds held by him as a private banker in real

or personal securities, or personal property, as are consistent with

safety and prudence of management.

2. No private banker shall appropriate to his own use or lend to any

person with whom he is associated as a partner, or invest in any

business conducted by a partnership of which he is a member, any funds

held by him as a private banker.

3. No private banker shall, after June thirtieth, nineteen hundred

thirty-eight, make with funds held by him as a private banker any loan

to, or investment in the capital stock of, any corporation of which

fifty per centum of the capital stock is owned or controlled directly or

indirectly, or as a result of any such investment would be so owned or

controlled by such private banker, as a private banker and as an

individual, or if such private banker is a partnership, by such

partnership and the individual members thereof, if as a result thereof

the total amount of outstanding loans and investments so made after such

date will exceed ten per centum of his permanent capital with respect to

any one such corporation, or will exceed twenty-five per centum of his

permanent capital with respect to all such corporations.